The background description provided herein is for the purpose of generally presenting the context of the disclosure. Work of the presently named inventors, to the extent it is described in this background section, as well as aspects of the description that may not otherwise qualify as prior art at the time of filing, are neither expressly nor impliedly admitted as prior art against the present disclosure.
Businesses employ a variety of strategies for assessing risks and costs associated with operation, which include, among others, risks and costs related to insurance and, specifically, insurance premiums, retained losses, and administrative expenses. One metric used by organizations to quantify risk is the total cost of risk (TCOR). Methods of calculating TCOR vary by organization, by industry, and by type of risk being assessed. Additionally, the results of TCOR calculations are often difficult to interpret and/or fail to provide useful guidance for identifying key loss cost drivers (i.e., the most significant loss costs) and decreasing the total cost of risk.